Why Does My Business Need Compliance Training?
A gap in your company’s compliance training is a risk—one with the potential to shrivel your organization’s bottom line in a hurry. Here’s one daunting example: the average Foreign Corrupt Practices Act penalty in 2017 was more than $66 million. And this year’s average is set to double it at more than $180 million.
From penalties and lawsuits to missed profits from halted operations and even government sanctions, there’s a long list of potential financial woes your business could endure if your team isn’t up to snuff on compliance.
In addition to saving you from costly legal consequences, here are three more reasons your business needs compliance training.
3 More Reasons Your Business Needs Compliance Training
1. A good reputation is good for the bottom line
You might think a hefty non-compliance fine is a one-time strain on company finances, but the resulting damage to the organization’s brand reputation could wind up costing you a lot more in the long run. Potential clients, investors and media all have their eye on you. And just one negative article can cost you 22 percent of business.
However, there is good news. Proactively investingin compliance training will not only help your business avoid public compliance scandal and embarrassment. It can also help you draw in like-minded clients. How so? Be vocal about your commitment to compliance and compliance training. Post about it on your website and your blog, if you have one. Include it in your marketing materials. Let the world know you’re proud to have standards, and you’re more likely to achieve success.
2. Compliance training helps attract top talent
Keeping your company on the ball when it comes to compliance training will boost brand reputation not only with clients and investors but also with your employees—and potential employees, too. In fact, a bad reputation can cost you at least 10 percent more per hire. And that’s if you even get the talent you want in the door.
With millennials now making up the majority of the working population, more than ever both prospective and current employees size up an organization with regard to how its values match up with their own ethics.
When millennials find a good fit for their values, they’re willing to work harder. In fact, if they believe their workplace has an inclusive culture, the vast majority—83 percent—report being actively engaged. If they believe the opposite, that their company doesn’t care about creating an inclusive environment, only a scant 13 percent say they’re engaged.
3. Safer workplaces save and make more money
In addition to saving you money on insurance premiums and legal fees, statistics show that companies with effective health and safety compliance training can cut their illness and injury rate up to 40 percent.
Studies also show that when everyone on the team simply understands how to do their jobs safely and well—not just from a process standpoint but also from a values standpoint—engagement, productivity and profitability all rise.
When businesses are compliant, thanks to strong compliance training, they tend to run more smoothly and efficiently in general. One Fortune 500 company increased productivity by 13 percent. In another example, one small plant saved more than $265,000 when they beefed up their safety compliance.
Beyond the obvious benefit of avoiding physical peril, discrimination and harassment, compliance training can create a better working environment for your employees, which can lead to a boost in productivity and bigger profits.